Status: Repaid

Annual Return Term Remaining
7.75% -
Loan to ARV
67.0%
Investment Offering
$248,000
Min. Investment
$5,000
Term
9 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

This deal does not have an active offering

Columbus, OH

REPEAT BORROWER

Updates

  • 06/21/21

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 06/14/2021.

    You will receive the following payments related to this payoff: June 2021 Partial Normal Interest and Principal.

    You can expect to see these funds deposited in your bank account within 5-8 business days. In addition, these payments will be view-able from your investor dashboard.

  • 05/26/21

    Fund That Flip has been in communication with the developer about the current status of the project.

    The developer has represented that they have secured a buyer and are working to close on a sale of the property.

    The sale is expected to close in June.

    Investors will be updated as further developments occur.

  • 04/13/21

    Based on the inspection report, this project is at 100.0% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 04/12/21.

  • 04/12/21

    Fund That Flip has received an inspection report of this property to monitor the progress.

    We are currently reviewing the inspection report to determine how much of the rehab has been completed.

  • 04/07/21

    Fund That Flip has been in communication with the developer about the current status of the project.

    The developer has represented that they are ready for their next draw disbursement.

    Fund That Flip is working to have an inspection ordered in order to verify the amount of work completed.

    Investors will be updated as further developments occur.

  • 02/26/21

    Based on the inspection report, this project is at 66.16% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 02/25/21.

  • 02/25/21

    Fund That Flip has received an inspection report of this property to monitor the progress.

    We are currently reviewing the inspection report to determine how much of the rehab has been completed.

  • 01/27/21

    Based on the inspection report, this project is at 49.74% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 01/26/21.

  • 01/26/21

    Fund That Flip has received an inspection report of this property to monitor the progress.

    We are currently reviewing the inspection report to determine how much of the rehab has been completed.

  • 01/05/21

    This loan has a maturity date of 08/20/2021. The developer is paid current but has not requested a construction draw yet.

    The Fund That Flip team is in communication with the developer to understand the construction progress and when they expect to take their initial draw.

    Fund That Flip will continue to provide updates as they are available.

Investment Summary


Type Rehab
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee

Fund That Flip closed the loan on this property on November 20, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $175,475 to the developer at closing for a loan to purchase of 81.6%. Fund That Flip is holding back $7,480 for 3 months of pre-paid interest.

The construction budget is $77,600. Fund That Flip will finance $58,585 of the total construction budget. Fund That Flip disburses construction funds based on verification of work performed, as determined by an independent 3rd party inspection firm. Fund That Flip reviews each inspection report and releases funds based on the percentage of completion of the project. Fund That Flip expects to make 4 construction draws, but may schedule additional inspections as needed. The final draw will be released after all work is verified to be complete. Once construction is complete, the borrower plans to sell the property.

Over the course of the project, the developer will contribute an estimated $72,479 in equity, including an estimated $39,525 at the time of closing. The total loan-to-ARV is 67.0%. There is a 3 month pre-payment penalty, meaning investors will earn interest through February 20, 2021, even if paid back earlier. The term of the underlying loan is 9 months with an option to extend. Should Fund That Flip choose to grant the extension(s), half of the extension fee(s) collected will be distributed to investors upon receipt.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $215,000 $175,475 70.8%
Purch. $215,000 $175,475 70.8%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $77,600 $58,585 23.6%
Prepaid Int $7,480 $7,480 3.0%
Closing $6,460 $6,460 2.6%
Total $306,540 $248,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $215,000 $175,475 $39,525 81.6%
Purch. $215,000 $175,475 $39,525 81.6%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $77,600 $58,585 $19,015 75.5%
Prepaid Int $7,480 $0 $7,480 0.0%
Closing $6,460 $6,460 $6,460 100.0%
Total $306,540 $240,520 $72,479 78.5%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $215,000 $175,475 81.6%
FTF Valuation: $370,000 $248,000 67.0%

Fund That Flip’s Internal Underwriters use industry standard valuation software, independent real estate data, and internal proprietary modeling to estimate the expected After Repair Value of the property.

Fund That Flip develops an internal valuation on all projects using an automated valuation model (AVM), which estimates real estate property valuations using mathematical modeling, combined with a database of real estate information for comparable properties. The comparable properties in the analysis are within 0.31 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $370,000 on the property is supported by the following data points:
• 5 comparable properties have recently sold between $346,000 and $405,000.
• Price per square foot of these comparable properties ranges from $143 to $199.
• Our internal valuation yielded a price per square foot of $178.

Fund That Flip used the FTF internal valuation when making the final decision to fund this project.

About the Property


Details

Bedrooms 4
Full Bathrooms 3
Year Built 1890
Square Footage 2062 SF
Purchase Price $215,000
Estimated Rehab Budget $77,600
ARV $370,000
Developer Equity $72,479 plus closing & holding costs

Market Overview


• Columbus is a city in Franklin County, OH

    • .4 miles to Franklin Park Conservatory and Botanical Gardens
    • .7 miles to Ohio State East Hospital
    • 2 miles to Capital University

• Retail Sales Sold: 94%
• Short Sales Sold: 0%
• REO Sold: 6%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on November 20, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Windows & Doors
• Exterior & Interior Paint
• Electrical, Plumbing, and HVAC Updates
• Appliances
• Cabinets & Counter Tops
• Tile
• Flooring
• Fence & Driveway

The full statement of work is available below.

Once construction is complete, the borrower plans to sell the property.

Risk


Having a thorough understanding of the risks of each investment in your portfolio is important prior to making an investment. Fund That Flip encourages you to do full due diligence on each deal and consult your investment, tax and legal advisors prior to investing.

Risk:
The market value of the property drops significantly removing opportunity for the developer to make a profit.

Mitigating Factor:
The property is located in a stable market and was purchased at a discount providing downside protection in a falling-price environment.

Risk:
The developer chooses not to complete the project.

Mitigating Factors:
• The developer has considerable equity in the project and the LTV on an ARV basis is 67.0%.
• Fund That Flip holds a first position lien on the property and the partner has personally guaranteed the loan.

Risk:
The developer is unable to complete the project in the allotted 9 month period.

Mitigating Factor:
Fund That Flip has built in a 3 month optional extension, approved only if project is advancing at a satisfactory pace. Extension corresponds with an additional fee to be shared on a pro-rata basis with investors.

A more complete list of risks for this investment is provided in the Investor Offering Materials and should be read and reviewed with your investment, tax and legal advisors.